Trading on the Malta Stock Exchange continues to be volatile, with slight corrections following sudden rallies in overall prices.
Nevertheless, the upward trend remains relatively intact, notwithstanding a slight retreat in the MSE index following the previous week’s strong climb.
The heavyweight banking sector was a drag on the overall index last week, which drifted 0.89% lower to end at 3,835.206, which, nevertheless, still represents a gain of 1.43% so far this year.
Volume was on the heavy side at just over 500,000 shares traded throughout the week. However, most of this was very unevenly distributed, with trading in two equities taking up more than two-thirds of total volume.
A total of 10 equities were traded last week, half of which recorded a range of losses, while two outperformed the index to end in positive territory. The remaining three closed the week unchanged.
The bulk of trading volume last week occurred in Maltapost plc, which saw just over 209,000 shares exchanging hands in only two trading sessions.
Despite this increase in volume, up from 22,000 shares traded the previous week, the share price remained at its all-time-high of €1.
This provided further backing for the nearly 14-month upward trend during which the price has gradually risen from €0.60 to €1.
Hefty trading was the order of the day for Bank of Valletta plc with over 107,000 shares traded nearly evenly throughout the five trading sessions. The share price spent most of the week in a tight range, trading between €3.14 and €3.15.
Ultimately, sellers had the upper hand, with the share price breaking through the lower price and ending the week at €3.135, or 0.48% lower.
On the other hand, HSBC Bank Malta plc’s share price spent most of the week trading in negative territory on significant volume.
A slight rise in Friday’s session minimally limited losses, with the share price ending the week 2.7% lower.
Last week’s negative performance followed several weeks of hefty gains, with anticipation of the announcement of the bank’s annual results providing a boost and a strong upward trend.
The share price closed the week at €3.405, a hefty 23% climb since it reached its low point in November last year. Trading volume last week totalled just over 66,000 shares.
Go plc’s share price stagnated at the €1.94 level for the second week in a row.
Gains in this stock have been slowly reducing as the weeks pass, with very limited price action occurring over the past month or so.
Volume traded was on the high side, with nearly 41,000 shares being exchanged, primarily on Thursday.
Trading in Malta International Airport plc shares totalled an encouraging 51,900 shares last week.
A positive mood characterised trading for the entire week in this stock, particularly following a company announcement on Wednesday, which highlighted what had been very much anticipated month after month – that official traffic results for 2010 had reached a record figure of 3.29 million.
December proved to be another successful month, with the highest number of passenger movements ever registered in the month, which further contributed to the overall successful yearly figures.
The share price spiked by 4.8% last week, clearly outperforming the local market.
International Hotels Investment plc last week announced that the five-star luxury Corinthia Hotel London has started accepting booking for reservations as of April, following a meticulous refurbishment of two landmark adjoining properties acquired by a consortium led by IHI from the Crown Estate in April 2008.
However, IHI’s share price was unmoved at €0.98, with light overall volume.
Minimal volume resulted in large falls in the share prices of Middlesea Insurance plc and Plaza Centres plc with the former shedding 4.6% and the latter dropping by 11.24%.
On the other hand, Fimbank plc climbed 2.17% to end the week at $0.94. However, traded volume was very light.
RS2 Software plc ended the week 2.2% lower following two trades of 600 shares.
Market value of local corporate bonds amounted to just over €622,000. Bond prices fluctuated only minimally.
The best performing bond was the 4.25% Fimbank dollar bond maturing in 2013, which ended the week 1.75% higher at $102. Conversely, the 6.25% Tumas Investments plc maturing between 2014 and 2016 shed 1.75% to close the week at €101.20.
Local Malta Government Stock prices maintained their downward bias last week, with hefty falls particularly in the long-term MGSs.
This, however, contrasts with the benchmark German bund prices, which improved slightly, given a slight correction in global equities overall.
A total of €1.2 million worth of Treasury Bills were traded last week.
This article, which was compiled by Jesmond Mizzi, joint managing director of Atlas JMFS Investment Services Ltd, does not intend to give investment advice and the contents therein should not be construed as such. Atlas JMFS is licensed to conduct investment services by the MFSA and is a member firm of the Malta Stock Exchange. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Atlas JMFS at 67/3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@atlasjmfs.com.